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Important GST update using Octane

As you are aware that the most important tax reform post-independence, Goods and Services Tax (‘GST’) is all set to be implemented from July 1, 2017. GST will bring transparency to the entire indirect tax structure. It will bring tax on all transactions viz; supply of goods and services under a single taxing window. This brings both opportunities and challenges for the businesses who would need to ensure complete preparedness for GST before the go-live date to meet the following objectives:

• There is no business discontinuity due to delay in enrolment completion or updating the IT systems or tax reporting processes

• There is an efficient system in place to ensure smooth passage of tax credits down the chain along with periodic reconciliation of any mismatches generated in reporting

• There is a smooth transition of input tax credits from the existing regime to GST on the go-live date to minimize any possible loss of credit or blockage of funds

Information required and points to be noted

1. For services rendered by Octane Marketing Pvt. Ltd. effective July 1, 2017 (or such other date on which GST gets implemented), we shall be charging GST as applicable on our services. Further, towards any services rendered by us if any advance invoice / receipt has been raised by Octane Marketing with service tax but in terms of the law if GST becomes payable, Octane Marketing reserves the right to recover differential GST from your organization

2. Further, as per our analysis, Octane Marketing’s services are covered by the default rule of place of supply as provided under the Integrated Goods and Services Tax Act, 2017. In view of this, we shall continue to raise our invoice(s) with GST registration details to be provided by you for the address for which we have been so far raising our invoice

3. With a view to partnering with our clients in achieving the above objectives, we at Octane Marketing Pvt. Ltd. are in the process of updating of our master data with GST registration details of our clients. In this backdrop, we request you to please provide us with the GST registration number(s) of the relevant entity(ies) and establishment(s) receiving Octane Marketing’s services, at the earliest. The same shall be used by us for billings effective July 1, 2017. Needless to mention that this is critical for us to make sure that the invoices having
complete and accurate disclosures are issued by us so as to minimize any situation of mismatch and disruption in flow of credits to your organization.

Conclusion

We look forward to your support and cooperation in our journey towards timely GST implementation and consequent discussions on possible business efficiencies arising out of changes in the indirect tax operating structure in India.